Oil stocks to consider trading in 2016
Oil could be a good option for investors that are looking at energy and want to steer clear of commodity prices’ volatility. It can provide a steady energy industry investment, but since 2014 oil prices have been dropping, with some share prices falling by as much as 40%. So does value exist?
- Current Oil Outook
- ExxonMobile
- Total
The energy industry is one of those sectors that works in cycles. While there seems to be an over supply of oil presently, if the lessons of the past are anything to go by, a situation where demand outstrips supply will eventually return. So looking at the big oil companies now may turn out to be a shrewd move in a few months’ time.
ExxonMobile acquisitions
One organisation that might interest investors is ExxonMobil, which has earned its stripes as an oil and gas leader over the years – it is a company committed to developing leaner business practices and rewarding invested capital. Positive recent developments for ExxonMobil include the takeover of InterOil, as well as the discoveries of the Liza oilfield in the Caribbean.
A consistent track record for productive development and exploration is important when considering which oil company to invest in, and ExxonMobil certainly ticks these boxes.
ExxonMobile Highlights
Total Investments and production increase
Total might also be worth a look, having invested highly in pushing projects to completion over the last two years, raking in the profits from production based on sources which are lower cost. Their management has already stated that they plan to increase production year on year by 4% in the period extending to 2019 – a positive sign for any company. It also recently won a contract with Al Shaheen, the large scale Persian Gulf oil field off the Qatari coast.
There is no doubt that investment into oil field development has fallen over the past few years, and when this happens, the companies that push ahead by continuing to pump capital into their activities could be primed for future successes. Take Russia, which has never pumped more oil than its present world leading level of 11 million barrels per day, as an example that production is not being cut everywhere.